DES PLAINES, IL— How hard is it for homeowners to get financing for the remodeling project they want to undertake? The National Association of the Remodeling Industry (NARI asked its research panel, made up of contractors across the county, their opinion in its 3rd quarter review of market conditions. NARI’s Remodeling Business Pulse conducts quarterly research that monitors the health of the remodeling industry to help educate consumers, legislators and regulators with credible information about the remodeling industry.
The results found that NARI member professional contractors who are involved with homeowners who need financing, placed it in a neutral to difficult range. None of the research panel members indicated that it was “very difficult” to get financing. And, about 30 percent indicated that it was either easy or very easy for its clientele to secure the needed funds.
When asked about the problems in getting financing the top responses were:
• The financing company being overly cautious was seen as the biggest barrier (38%).
• The project being too expensive relative to the home’s value was next as a problem (27%).
• Poor credit history was only selected as an issue by 11%.
A bank or credit union was the dominant source of funds for financing that was used if cash or check was not used. This source 72% was reported by members vs. a credit card, the number 2 choice at only 20% .
The biggest barriers to financing were an overly cautious lender and the cost of the project vs. the home’s value.
An earlier NARI survey found that 96 percent of the NARI member contractors who had completed the questionnaire, accepted checks as a form of payment. Approximately one-quarter had accepted credit cards, home equity loans, bank home improvement loans or cash, with only 6 percent arranging financing for their customer.
NARI’s third-quarter Remodeling Business Pulse data of current and future remodeling business conditions indicated strong growth in the third quarter of 2014 with a rating of 6.41. Quarter-over-quarter increases are evident in all sub-components measuring remodeling activity. This is the second quarter of growth in 2014, coming on top of June’s strong increase over the 6.07 recorded in March.
NARI is the source for homeowners seeking to hire a professional remodeling contractor. Members are full-time, dedicated remodelers who follow a strict code of ethics with high standards of honesty, integrity and responsibility.
About NARI: The National Association of the Remodeling Industry (NARI) is the medium for business development, a platform for advocacy and the principal source for industry intelligence. NARI connects homeowners with its professional members and provides tips and tricks so that the consumer has a positive remodeling experience. NARI is a nationwide network of nearly 6500 member companies and their employees. Consumers may wish to search www.NARI.org to find a qualified NARI professional or call NARI National at (847) 298-9200 and request a free copy of NARI’s brochure, “How to Select a Remodeling Professional.”
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